As the world is at a standstill, thanks to COVID-19, it is disturbing to note how some things seem to not change. It has been a privileged person’s world all along and it continues to be so in the crisis. The US government’s Paycheck Protection Program (PPP) is an initiative for businesses working in small-scale to enable them to pay their employees and other fees like utilities, etc. during the pandemic. Though they are issued as loans, they may be forgone if enough evidence can be presented that the money has been used only to fulfil these requirements. About $349 billion was assigned for the same.
What might look like a great plan by the US government, however, did not turn out so favourably for the small businesses, points out Conor Van Santen from Saint Louis University. When the initiative took off, it was thought provoking to notice how large-scale businesses like Shake Shack, a nationwide chain of restaurants, which was still working for customers for takeaway, was given a loan sanction of $10 million. AutoNation, a world-wide company with about 360 outlets, was given the sanction of $77 million. How these came to be approved astounds the people. Though both the companies were ready to pay back the amount after the widespread criticism they received for this, the bottom line remains: is the plan being effective for the small-scale companies at all?
In the entire conversation about this, the ones that seem to be getting off without much criticism are the banks in USA. Holding much power, they have a huge role to play in the situation. While the government can be given a little leeway for trying its best to tackle the situation, these financial institutions continue to make the American people wonder who can really be trusted.
N Malavika Mohan